An increase in the revenue of the advice firm consolidator AFH has come both from the integration of acquired firms, and improvements in the average revenue brought in by existing advisers, the firm says. The firm has passed £4.5bn in FUM after a record 16 acquisitions over the last year; an increase of £1.7bn has increased over the last 12 months.
In a trading update this morning, AFH said that for the 12 months to 31 October, revenue is expected to come in at £50m, up 49% from £33.6m in 2017. AFH had £22m in cash from 31 October after raising £17.5m in December 2017 and £15m as of this October from institutional investors.
An update from the firm reads: “AFH is well positioned to continue to take advantage of ongoing IFA market consolidation.”
The firm states that when it expects to hit £50m in revenue in its full year results, the majority will come from acquisitions (approximately £30m) with £20m generated organically as new business.
The firm’s general acquisition process is as follows; when an acquisition completes, the form would pay an upfront fee, with further pay-outs later based on performance.
AFH states this morning that it is paying out on average above 90% of the price negotiated.
Chief executive of AFH, Alan Hudson, said: “I believe that shared values are critical in creating successful acquisitions that bind both advisers and clients to the AFH group and am pleased at the high level of advisers who remain with AFH many years after their earn out has been completed.”
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Gunner & Co. work with IFAs looking to sell their business, and can give you more information if you wish – contact louise.jeffreys@gunnerandco.com
